Berlin, Germany

Workers at nine Volkswagen plants across Germany will strike on Monday, halting production, as their tensions escalate with the automaker over wage cuts and possible plant closures. Tens of thousands of employees are set to take part in demonstrations at major sites including the company's headquarters in Wolfsburg, the Hanover plant, Emden, Salzgitter and Brunswick.  

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The strikes, planned for several hours, are a turning point in negotiations that have been under way for weeks. Talks beginning on Tuesday (December 9) could also negotiate over 24 hour or even indefinite walkouts if no agreement is reached, Labour representatives have warned.  

Volkswagen has to decide for itself how long and hard this confrontation will be at the bargaining table, IG Metall representative Thorsten Gröger said Sunday.  

As part of the efforts to counter shrinking sales and declining profit margins Volkswagen is asking for a 10 percent wage cut. Automaker is also mulling closing some German plants for the first time since its 87 year history.  

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The IG Metall has tabled proposals to save up to 1.5bn euros (USD 1.6 bn) including forgoing 2025 and 2026 bonuses, but Volkswagen has rejected the offer. Volkswagen has yet to meet a union insistence on a long-term plan for every German plant.  

Volkswagen has taken steps to minimise disruption, the company spokesperson said, without commenting on the dispute itself, adding that the firm respects workers' right to strike and has provided basic supplies to customers. But the strikes will have a big impact on output, as the automaker struggles with plummeting demand and inventory headaches.  

The labour action includes facilities under the umbrella of Volkswagen Sachsen GmbH, including Zwickau plant, which builds electric vehicles. Monday and Tuesday will both see workers down tools at these sites.  

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This dispute underscores broader challenges for Volkswagen as it contends with market pressures and an increasingly vocal workforce. Analysts say the outcome of these negotiations could set a precedent for labour relations in Germany's automotive industry.